On May 14, 2026, the U.S. Senate Banking Committee advanced the CLARITY Act, a pivotal piece of legislation aimed at establishing a clear regulatory framework for digital assets. This bipartisan vote follows the House's passage of its version of the bill last year. The CLARITY Act seeks to define which digital assets fall under the jurisdiction of the Securities and Exchange Commission (SEC) as securities and which are regulated by the Commodity Futures Trading Commission (CFTC) as commodities, thereby resolving years of regulatory uncertainty. One of the key provisions debated was the regulation of stablecoin yields, which now prohibits returns on passive stablecoin holdings similar to deposit interest but allows rewards linked to active usage such as trading and staking. Additionally, the bill offers legal protections for software developers against liability for illicit activities conducted by users of their technology. Following this announcement, the cryptocurrency market reacted positively, with Coinbase (NASDAQ: COIN) rising by 9.10%, Bitcoin (BTC) climbing back to the $81,000 mark, and Ethereum (ETH) increasing by 2.8%.